Blue Cross Blue Shield of Michigan celebrates its 75th year

Blue Cross Blue Shield of Michigan reached a milestone on March 8, celebrating its 75th year as a nonprofit health insurer. “Our company is 75, but we’re not acting our age by any means,” said Daniel J. Loepp, president and CEO of BCBSM. “We’re a modern, dynamic company prepared to serve and guide our stakeholders as health care transforms under the Affordable Care Act. Our stakeholders benefit from Blue Cross’ experience and strong Michigan roots – given our deep relationships with doctors and hospitals across the state, and our history of engagement within Michigan’s diverse communities.”

BCBSM began when Michigan hospitals formed Blue Cross and a group of doctors affiliated with the Michigan State Medical Society started Blue Shield. The two entities joined together in the 1970s. Today, BCBSM and its HMO subsidiary, Blue Care Network, provide health coverage to 4.45 million members in Michigan and hundreds of thousands who work for Michigan companies but reside in other states.

Since 1980, the company has served as Michigan’s “insurer of last resort,” a safety-net role defined by BCBSM’s unique approach to providing health coverage to all Michigan residents regardless of pre-existing health condition, and guaranteeing the renewability of that coverage. The company transitioned to become a nonprofit mutual insurance company on Dec. 31, 2013. As part of that transition, BCBSM will contribute $1.56 billion over 18 years, beginning in 2014, to the independent Michigan Health Endowment to sustain the company’s nonprofit social mission.

“Our character as a nonprofit organization remains our guiding force, despite the changes that have taken place over our history and our growth as a business,” Loepp said. “Blue Cross strives to keep our margins very low on health insurance, maximize revenue from subsidiary companies and investments to take pressure off health insurance premiums, and contribute in substantial ways to the public good in Michigan.”